Pricing a Duplex - Do investors still find the 1% rule?

Question

My husband and I own a duplex in OKC. We are looking into possibly selling, but we are curious about pricing. Do investors still seek out the 1% rule? Or is that a thing of the past? It seems like our property value may be higher than the 1% rule. FYI (Gross Rent is $2,600 per month, but I think it's worth more than $260,000). Is anyone still finding deals that meet the 1% rule?

FYI, we are not interested in working with a real estate agent.

Rick Albert · Answer

What are duplexes selling or in the area and what are their rents? That will give you a pretty good idea.

Or, you could list for the 1% rule and maybe it gets bid up.

I do disagree with some of the comments, the rents are an important factor in pricing a property. If the rents are low, the offer has to be adjusted accordingly. Since it is fully occupied, you are losing out on owner occupied buyers. This limits your pool to investors and the numbers have to work.

Drew Sygit · Answer

If you're asking this question, you do NOT know enough about marketing a property for sale and should hire an agent!

FYI - rents have NOTHING to do with the value of a 1-4 family property.

Kamil Lysik · Answer

Good question. The short answer: 1% deals still exist , but they're getting harder to find, so your property is probably priced where the market is.

For a duplex, investors typically look at it two ways: the 1% rule as a quick screen, and GRM (Gross Rent Multiplier) as a slightly more nuanced version. At $2,600/month, a 1% buyer would want to pay around $260k — but a GRM-based buyer might go higher depending on local comps and expenses.

The bigger question is your Net Operating Income. What are your actual expenses — taxes, insurance, maintenance? That number will tell you what an investor can realistically offer and still make the deal work. Happy to help you think through it if you share more details.

Rhett Tullis · Answer

typically in okc we are seeing duplexes (especially newer ones) going for well above the 1% rule so you should estimate for more I would say.  If it is an older one then you may be closer to that.  You also need to look at the utilities are any shared or split?  Is the property legitimately zoned and built as a duplex?  Lots of ins and outs.  While I understand wanting to save on the commission (that was why I got my license originally over 20 years ago) there is some value that an agent can add in situations like this if they have experience in multi fam and investor focussed properties.

Henry Lazerow · Answer

Find a good realtor in local area and have them run comps. 2-4s are sold off comps not gross rents.

Min Zhang · Answer

Hey Jodi, the best way to gauge value is to look at similar duplexes that have sold recently in your immediate area, adjusting for unit size, condition and update. If comparable properties are closing above $260k, that’s a pretty good sign your place could be worth more.  You can try using Zillow to check for sales comps. There’s a filter that lets you see recently sold properties in your area

Caleb Brown · Answer

1% is still something people hunt for but harder to find. I would look at comps if it's a duplex. Certain areas will demand a premium price that is different. 1% rule was a popular term for doing brief underwriting on a deal. I would not base the price solely on that, comps will give you direction.